Corporate Governance and Ethical Responsibility

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Abstract

The concept of corporate with respect to the social responsibility is not unique. Different guidelines, rules and regulation have been established in corporations for achieving good governance practices. However, different studies in this regard are giving the impression that there is lacking in practices ethics among the corporations, especially the public limited corporations. The importance of good ethical practices in the corporation is vital because the promotion and motivation towards better corporate practices produce good impression in terms of accountability, responsibility and transparency. As far as concerned with corporate culture, the establishment of ethical principles, their positions and structure in the corporations is the initiating step for moving towards good governance and in the achievement of legal practices (Othman & Rahman, 2011).

Table of Contents

Abstract2

Introduction4

Discussion5

Role of Ethical Practices in Corporate Sector5

Case Study for Analysis6

Discussion With Respect To the Case Study7

Internal and External Stakeholders of the Hospital7

Potential Conflict of Interest between Internal and External Stakeholders8

Ethical Responsibility9

Deontology Principle10

Utilitarianism Principle11

Workplace Safety11

Conclusion12

References13

Appendices14

Corporate Governance and Ethical Responsibility

Introduction

The increased rate of accountability has given the awareness to the public regarding the ethical structure of public corporate governance. Corporation, following ethical practices also focuses on the credibility of corporate governance with respect to the ethical audit. The major factor for achieving the moral health is the corporate governance. This corporate governance is given the dimensions to the firm for the applications of ethics and social justice on the basis of equity. At organizational level, individual responsibility and social equity is essential for maintaining the good ethical practices, which is the ultimate sign of good corporate governance. Ethical audit is helpful in identifying the issues (Fleming & McNamee, 2005).

The terminologies such as corporate governance, business ethics, compliance and corporate social responsibility have gained a lot of importance in the current corporate sector. On the other hand, different corporation claim that the purpose of their existence is making profile within the limitations defined by the legal bodies and this way they are socially responsible. However, studies show that this claim of certain corporations is not valid with respect to the concept of maximizing the shareholder profit. Because, with the passage of time, the share is eroding by the firms, and for this reason the validity of this claim by the business companies has been challenged by the researchers. As a consequence of this, in real sense the corporations today's image has been appeared as a business institution whose purpose is to earn the profit (Nakano, 2007).

Discussion

Role of Ethical Practices in Corporate Sector

Corporate governance includes all the regulatory mechanisms and their relationship with management of a company, its board of directors, shareholders and other stakeholders. The Corporate governance also includes the mission and vision of a company. Therefore, the comprehensive definition of corporate governance is defined as:

“A coordination of bylaw and approaches by which corporations are aimed at and controlled spotlighting on the internal and external corporate arrangements with the purpose of scrutinizing the activities of organization and directors and thus justifying ...